datoid

The 10-year Treasury yield fell to 5.09% on August 28, 1998—4.5 standard deviations below its 60-day average of 5.44%. This represents an extreme statistical deviation in bond markets. The decline coincided with record-low unemployment at 4.30% and rising GDP growth of 1.4% over 3 months. Despite strong economic fundamentals, investors appear to be seeking safe-haven assets. Such large deviations in Treasury yields often signal major market stress or shifting Fed expectations. What external factors might explain this flight to quality amid otherwise robust economic data?